WorksheetsCPT
Total questions: 11
Worksheet time: 6mins
Name
Class
Date
1.
Inventory that is ready for sale is called….
a)
raw materials
b)
work in progress
c)
finished goods
d)
store supplies
2.
The respective normal balances of purchases, Discount received, and Freight-in are…
a)
credit,credit,debit
b)
debit,credit,credit
c)
debit,credit,debit
d)
debit,debit,debit
3.
AS-2 requires that the financial statements should disclose…..
a)
the accounting policies adopted in measuring inventories, including the cost formula
b)
the total carrying amount of inventories and classification appropriate to the enterprise
c)
the accounting policies adopted in measuring inventories, including the cost formula AND the total carrying amount of inventories and classification appropriate to the enterprise
d)
the accounting policies adopted in measuring inventories, including the cost formula OR the total carrying amount of inventories and classification appropriate to the enterprise
4.
Perpetual inventory valuation system does not require….
a)
suspension of receipts and issue in the entire factory
b)
maintenance of inventory records
c)
physical count or measurement of inventory
d)
suspension of receipts and issue in the entire factory, maintenance of inventory records and physical count or measurement of inventory.
5.
The journal entry to record a return of inventory purchased on credit under a periodic inventory system would be..
a)
Sundry creditors A/C dr. Purchase Returns A/C
b)
Purchase Returns A/C dr. Bills Payable
c)
Accounts Payable A/C dr. Inventory A/C
d)
Method of stock taking
6.
Which of the following is the same as 'net realisable value' of inventory?
a)
gross selling price
b)
proceeds of sale less all further marketing, selling and distribution costs
c)
average cost
d)
replacement price
7.
……… concentrates on the physical linking of the particulars item sold.
a)
weighted average
b)
Specific Identification Method
c)
FIFO
d)
LIFO
8.
…….. Computes a unit cost by dividing the total cost by dividing the total acquisition cost of all items available for sale by the number of units available for sale.
a)
weighted average
b)
Specific Identification Method
c)
FIFO
d)
LIFO
9.
XYZ Ltd. purchased 550 units of Material A @Rs. 3.10 per unit on 16th August, 600 units @Rs. 3.50 on 18th August, 750 units @3.85 on 26th August and 500 units @3.29 per unit on 2nd September. The company issued 450 units to production on 4th September @3.47 per unit. Discern the method of inventory valuation followed by the company.
a)
weighted average
b)
Specific Identification Method
c)
FIFO
d)
LIFO
10.
An undervaluation of previous year's opening inventory will…..
a)
cause current years net income to be overstated
b)
causes previous years net income to be understated
c)
cause previous years net income to be overstated
d)
none of these
11.
If the sale is Rs. 2000 and the rate of profit on cost of goods sold is 25% then the cost of goods sold is….
a)
Rs. 2000
b)
Rs. 1500
c)
Rs. 1600
d)
Rs. 700
100 %
